Shildon leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Shildon enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Shildon you must see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Shildon leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
Leasehold residencies in Shildon with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The lawyers that we work with undertake Shildon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to unsuccessful correspondence with the landlord of her basement flat in Shildon, Francesca started the lease extension process as the eighty year mark was quickly advancing. The legal work completed in March 2012. The landlord’s charges were kept to an absolute minimum.
In 2012 we were contacted by Mr Y Bailey who, having moved into a ground floor apartment in Shildon in May 1995. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar premises in Shildon with an extended lease were valued around £235,600. The mid-range amount of ground rent was £60 billed annually. The lease elapsed in 2086. Given that there were 62 years left we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including costs.
In 2010 we were contacted by Mr and Mrs. N Lambert who, having completed a ground floor flat in Shildon in October 2009. The question was if we could approximate the price would be to prolong the lease by an additional years. Identical properties in Shildon with 100 year plus lease were valued about £174,200. The average ground rent payable was £55 collected per annum. The lease end date was on 8 July 2075. Having 51 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including fees.